BILL NUMBER: SB 307	CHAPTERED  04/22/99

	CHAPTER   17
	FILED WITH SECRETARY OF STATE   APRIL 22, 1999
	APPROVED BY GOVERNOR   APRIL 22, 1999
	PASSED THE ASSEMBLY   APRIL 15, 1999
	PASSED THE SENATE   MARCH 8, 1999
	AMENDED IN SENATE   MARCH 1, 1999

INTRODUCED BY   Senator Rainey
   (Coauthor:  Assembly Member Torlakson)

                        FEBRUARY 4, 1999

   An act to amend Section 33333.6 of the Health and Safety Code,
relating to redevelopment, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 307, Rainey.  Redevelopment plans.
   The existing Community Redevelopment Law imposes specified time
limitations on redevelopment plans, prohibits an agency from paying
indebtedness or receiving property taxes after 10 years from the
termination of the plan, and authorizes the extension of those time
limitations in certain instances if prescribed procedures are
followed, including extending for up to 10 years a 20-year time limit
on the establishment of specified loans, advances, and indebtedness
based upon substantial evidence of blight that cannot be eliminated
without additional debt.  Existing law authorizes a legislative body
to amend a redevelopment plan adopted prior to January 1, 1994, that
has a shorter limitation than authorized by law to extend the
limitation, not to exceed those specified time limitations, by
adoption of an ordinance on or after January 1, 1999, but on or
before December 31, 1999, without complying with those prescribed
procedures.
   This bill would, with respect to extending for up to 10 years a
20-year time limit on the establishment of specified loans, advances,
and indebtedness based upon substantial evidence of blight that
cannot be eliminated without additional debt, prohibit the use of the
authority to extend a shorter limitation by adoption of an ordinance
on or after January 1, 1999, but on or before December 31, 1999,
without complying with those prescribed procedures.
   The bill would specify that its provisions do not constitute a
change in, but are declaratory of, existing law.
  The bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 33333.6 of the Health and Safety Code is
amended to read:
   33333.6.  The limitations of this section shall apply to every
redevelopment plan adopted on or before December 31, 1993.
   (a) (1) The time limit on the establishing of loans, advances, and
indebtedness adopted pursuant to paragraph (2) of subdivision (a) of
Section 33333.2 or paragraph (2) of subdivision (a) of Section
33333.4 shall not exceed 20 years from the adoption of the
redevelopment plan or January 1, 2004, whichever is later.  This
limit, however, shall not prevent agencies from incurring debt to be
paid from the Low and Moderate Income Housing Fund or establishing
more debt in order to fulfill the agency's housing obligations under
Section 33413.  This limit shall not prevent agencies from
refinancing, refunding, or restructuring indebtedness after the time
limit if the indebtedness is not increased and the time during which
the indebtedness is to be repaid does not exceed the date on which
the indebtedness would have been paid.
   (2) The time limitation established by this subdivision may be
extended, only by amendment of the redevelopment plan, after the
agency finds, based on substantial evidence that:  (A) significant
blight remains within the project area; and (B) this blight cannot be
eliminated without the establishment of additional debt.  However,
this amended time limitation may not exceed 10 years from the time
limit established pursuant to this subdivision or the time limit on
the effectiveness of the plan established pursuant to subdivision
(b), whichever is earlier.
   (b) The effectiveness of every redevelopment plan to which this
section applies shall terminate at a date which shall not exceed 40
years from the adoption of the redevelopment plan or January 1, 2009,
whichever is later.  After the time limit on the effectiveness of
the redevelopment plan, the agency shall have no authority to act
pursuant to the redevelopment plan except to pay previously incurred
indebtedness and to enforce existing covenants, contracts, or other
obligations.
   (c) Except as provided in subdivisions (g) and (h), a
redevelopment agency shall not pay indebtedness or receive property
taxes pursuant to Section 33670 after 10 years from the termination
of the effectiveness of the redevelopment plan pursuant to
subdivision (b).
   (d) (1) If plans that had different dates of adoption were merged
on or before December 31, 1993, the time limitations required by this
section shall be counted individually for each merged plan from the
date of the adoption of each plan.  If an amendment to a
redevelopment plan added territory to the project area on or before
December 31, 1993, the time limitations required by this section
shall commence, with respect to the redevelopment plan, from the date
of the adoption of the redevelopment plan, and, with respect to the
added territory, from the date of the adoption of the amendment.
   (2) If plans that had different dates of adoption are merged on or
after January 1, 1994, the time limitations required by this section
shall be counted individually for each merged plan from the date of
the adoption of each plan.
   (e) (1) Unless a redevelopment plan adopted prior to January 1,
1994, contains all of the limitations required by this section and
each of these limitations does not exceed the applicable time limits
established by this section, the legislative body, acting by
ordinance on or before December 31, 1994, shall amend every
redevelopment plan adopted prior to January 1, 1994, either to amend
an existing time limit that exceeds the applicable time limit
established by this section or to establish time limits that do not
exceed the provisions of subdivision (a), (b), or (c).
   (2) The limitations established in the ordinance adopted pursuant
to this section shall apply to the redevelopment plan as if the
redevelopment plan had been amended to include those limitations.
However, in adopting the ordinance required by this section, neither
the legislative body nor the agency is required to comply with
Article 12 (commencing with Section 33450) or any other provision of
this part relating to the amendment of redevelopment plans.
   (f) (1) If a redevelopment plan adopted prior to January 1, 1994,
contains one or more limitations required by this section, and the
limitation does not exceed the applicable time limit required by this
section, this section shall not be construed to require an amendment
of this limitation.
   (2) A redevelopment plan adopted prior to January 1, 1994, that
has a limitation shorter than the terms provided in this section may
be amended by a legislative body by adoption of an ordinance on or
after January 1, 1999, but on or before December 31, 1999, to extend
the limitation, provided that the plan as so amended does not exceed
the terms provided in this section.  The ordinance authorized by this
subdivision shall not be used to extend a limitation pursuant to the
authority in paragraph (2) of subdivision (a).  In adopting this
ordinance, neither the legislative body nor the agency is required to
comply with Section 33354.6 or Article 12 (commencing with Section
33450) or any other provision of this part relating to the amendment
of redevelopment plans.
   (g) The limitations established in the ordinance adopted pursuant
to this section shall not be applied to limit allocation of taxes to
an agency to the extent required to eliminate project deficits
created under subdivision (e) of Section 33320.5, subdivision (g) of
Section 33334.6, or subdivision (d) of Section 33487, in accordance
with the plan adopted pursuant thereto for the purpose of eliminating
the deficits or to implement a replacement housing program pursuant
to Section 33413.  In the event of a conflict between these
limitations and the obligations under Section 33334.6 or to implement
a replacement housing program pursuant to Section 33413, the
legislative body shall amend the ordinance adopted pursuant to this
section to modify the limitations to the extent necessary to permit
compliance with the plan adopted pursuant to subdivision (g) of
Section 33334.6 and to allow full expenditure of moneys in the agency'
s Low and Moderate Income Housing Fund in accordance with Section
33334.3 or to permit implementation of the replacement housing
program pursuant to Section 33413.   The procedure for amending the
ordinance pursuant to this subdivision shall be the same as for
adopting the ordinance under subdivision (e).
   (h) This section shall not be construed to affect the validity of
any bond, indebtedness, or other obligation, including any mitigation
agreement entered into pursuant to Section 33401, authorized by the
legislative body, or the agency pursuant to this part, prior to
January 1, 1994.  This section shall not be construed to affect the
right of an agency to receive property taxes, pursuant to Section
33670, to pay the bond , indebtedness, or other obligation.
   (i) A redevelopment agency shall not pay indebtedness or receive
property taxes pursuant to Section 33670, with respect to a
redevelopment plan adopted prior to January 1, 1994, after the date
identified in subdivision (c) or the date identified in the
redevelopment plan, whichever is earlier, except as provided in
paragraph (2) of subdivision (f) or in subdivision (h).
   (j) The Legislature finds and declares that the amendments made to
this section by the act that adds this subdivision are intended to
add limitations to the law on and after January 1, 1994, and are not
intended to change or express legislative intent with respect to the
law prior to that date.  It is not the intent of the Legislature to
affect the merits of any litigation regarding the ability of a
redevelopment agency to sell bonds for a term that exceeds the limit
of a redevelopment plan pursuant to law that existed prior to January
1, 1994.
   (k) If a redevelopment plan is amended to add territory, the
amendment shall contain the time limits required by Section 33333.2.

  SEC. 2.  The Legislature finds and declares that the amendment of
Section 33333.6 of the Health and Safety Code made by this act does
not constitute a change in, but is declaratory of, existing law.
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to prevent the time limit in adopted redevelopment plans
on the establishment of loans, advances, and indebtedness from being
extended for an additional 10 years pursuant to an expedited process
and without notice, hearing, and a demonstration of significant
blight, it is necessary that this act take effect immediately.
